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JPF product finds favour across alt asset classes

Mid-year figures from Jersey’s regulator show that the Jersey Private Fund structure (JPF), launched last year, is continuing to show strong appeal across the alternative asset classes.

According to statistics collated by the Jersey Financial Services Commission (JFSC), 130 JPFs had been established by 30 June this year holding combined total assets under management (AUM) of £19.4 billion.

The figures also show that around half of the AUM figure (48%) is attributed to infrastructure, debt and credit funds, whilst hedge funds account for almost a third (29%). Private equity and venture capital funds make up 16% of the total.

The JPF was added to Jersey’s suite of fund structuring options in April 2017, and was introduced to provide institutional and professional investors with a more streamlined and fast-track regime with tailored ongoing regulatory requirements.

The product offers the ability to establish a fund for up to 50 investors in as little as 48 hours, with the new figures from the JFSC also showing that almost a quarter of established JPFs (24%) have less than 15 investors or offers.

Commenting on the figures, Jersey Finance CEO, Geoff Cook, said:

“This is the first time this set of figures has been published since the JPF was launched last year as a forward-thinking option for sophisticated investors that balances innovation with an appropriate degree of regulatory oversight. The indications are that it is perfectly meeting the needs of a key segment of the alternative investor community who are looking for better co-investment solutions. Firms are reporting, for instance, that the vehicle is particularly popular amongst like-minded family offices who are looking to come together to tap into the burgeoning alternatives market.”

Mike Byrne, Chair of the Jersey Funds Association, added:

“The JPF is essentially mirroring the general growth Jersey is seeing in the infrastructure, debt and credit fund asset classes, which across our funds spectrum grew by 50% over the past 12 months, whilst the JPF is also being well used for hedge, venture capital and private equity funds. Not only does this performance of the JPF reinforce that it offers a much-needed option for small numbers of professional and institutional investors, it also underlines Jersey’s reputation in the alternatives space. We fully expect the upward trajectory of the JPF to continue.”

These figures follow a number of positive developments for Jersey’s funds industry in recent weeks. The publication of the most recent quarterly figures for Jersey’s finance industry showed that the net asset value of funds under administration in Jersey, excluding JPFs, grew by £15 billion during the second quarter of 2018 to stand at £296 billion at 30 June 2018, the highest recorded figure to date. In addition, Man Group announced last month that it is proposing to incorporate a new Group holding company in Jersey as part of a realignment of its international corporate structure.